Full Text of HB4873 100th General Assembly
HB4873eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Payday Loan Reform Act is amended by | 5 | | changing Sections 2-10 and 2-15 as follows: | 6 | | (815 ILCS 122/2-10)
| 7 | | Sec. 2-10. Permitted fees. | 8 | | (a) If there are insufficient funds to pay a check, | 9 | | Automatic Clearing House (ACH) debit, or any other item | 10 | | described in the definition of payday loan under Section 1-10 | 11 | | on the day of presentment and only after the lender has | 12 | | incurred an expense, a lender may charge a fee not to exceed | 13 | | $25. Only one such fee may be collected by the lender with | 14 | | respect to a particular check, ACH debit, or item even if it | 15 | | has been deposited and returned more than once. A lender shall | 16 | | present the check, ACH debit, or other item described in the | 17 | | definition of payday loan under Section 1-10 for payment not | 18 | | more than twice. A fee charged under this subsection (a) is a | 19 | | lender's exclusive charge for late payment. | 20 | | (a-5) A lender may charge a borrower a fee not to exceed $1 | 21 | | for the
verification required under Section 2-15 of this Act in | 22 | | connection with a payday loan and, until July 1, 2020, in | 23 | | connection with an installment payday loan. Beginning July 1, |
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| 1 | | 2020, a lender may charge a borrower a fee not to exceed $3 for | 2 | | the verification required under Section 2-15 of this Act in | 3 | | connection with an installment payday loan. In no event may a | 4 | | fee be greater than the amount charged by the certified | 5 | | consumer reporting service . Only one such fee may
be collected | 6 | | by the lender with respect to a particular loan. | 7 | | (b) Except for the finance charges described in Section 2-5 | 8 | | and as specifically allowed by this Section, a lender may not | 9 | | impose on a consumer any additional finance charges, interest, | 10 | | fees, or charges of any sort for any purpose.
| 11 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 12 | | (815 ILCS 122/2-15)
| 13 | | Sec. 2-15. Verification. | 14 | | (a) Before entering into a loan agreement with a consumer, | 15 | | a lender must use a commercially reasonable method of | 16 | | verification to verify that the proposed loan agreement is | 17 | | permissible under this Act. | 18 | | (b) Within 6 months after the effective date of this Act, | 19 | | the Department shall certify that one or more consumer | 20 | | reporting service databases are commercially reasonable | 21 | | methods of verification. Upon certifying that a consumer | 22 | | reporting service database is a commercially reasonable method | 23 | | of verification, the Department shall:
| 24 | | (1) provide reasonable notice to all licensees | 25 | | identifying the commercially reasonable methods of |
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| 1 | | verification that are available; and
| 2 | | (2) immediately upon certification, require each | 3 | | licensee to use a commercially reasonable method of | 4 | | verification as a means of complying with subsection (a) of | 5 | | this Section. | 6 | | (c) Except as otherwise provided in this Section, all | 7 | | personally identifiable information regarding any consumer | 8 | | obtained by way of the certified database and maintained by the | 9 | | Department is strictly confidential and shall be exempt from | 10 | | disclosure under Section 7(1)(b)(i) of the Freedom of | 11 | | Information Act. | 12 | | (d) Notwithstanding any other provision of law to the | 13 | | contrary, a consumer seeking a payday loan may make a direct | 14 | | inquiry to the consumer reporting service to request a more | 15 | | detailed explanation of the basis for a consumer reporting | 16 | | service's determination that the consumer is ineligible for a | 17 | | new payday loan. | 18 | | (e) In certifying a commercially reasonable method of | 19 | | verification, the Department shall ensure that the certified | 20 | | database: | 21 | | (1) provides real-time access through an Internet | 22 | | connection or, if real-time access through an Internet | 23 | | connection becomes unavailable to lenders due to a consumer | 24 | | reporting service's technical problems incurred by the | 25 | | consumer reporting service, through alternative | 26 | | verification mechanisms, including, but not limited to, |
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| 1 | | verification by telephone; | 2 | | (2) is accessible to the Department and to licensees in | 3 | | order to ensure
compliance with this Act and in order to | 4 | | provide any other information that the Department deems | 5 | | necessary; | 6 | | (3) requires licensees to input whatever information | 7 | | is required by the Department; | 8 | | (4) maintains a real-time copy of the required | 9 | | reporting information that is available to the Department | 10 | | at all times and is the property of the Department; | 11 | | (5) provides licensees only with a statement that a | 12 | | consumer is eligible or ineligible for a new payday loan | 13 | | and a description of the reason for the determination; and | 14 | | (6) contains safeguards to ensure that all information | 15 | | contained in the database regarding consumers is kept | 16 | | strictly confidential.
| 17 | | (f) The licensee shall update the certified database by | 18 | | inputting all information required under item (3) of subsection | 19 | | (e): | 20 | | (1) on the same day that a payday loan is made; | 21 | | (2) on the same day that a consumer elects a repayment | 22 | | plan, as provided in Section 2-40; and | 23 | | (3) on the same day that a consumer's payday loan is | 24 | | paid in full,
including the refinancing of an installment | 25 | | payday loan as permitted under subsection (c) of
Section | 26 | | 2-5. |
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| 1 | | (g) A licensee may rely on the information contained in the | 2 | | certified database as accurate and is not subject to any | 3 | | administrative penalty or liability as a result of relying on | 4 | | inaccurate information contained in the database. | 5 | | (h) The certified consumer reporting service shall | 6 | | indemnify the licensee against all claims and actions arising | 7 | | from illegal or willful or wanton acts on the part of the | 8 | | certified consumer reporting service.
| 9 | | (i) The certified consumer reporting service may charge a | 10 | | verification
fee not to exceed $1 upon a loan being made or | 11 | | entered into in the
database. Beginning July 1, 2020, the | 12 | | certified consumer reporting service may charge a verification | 13 | | fee not to exceed $3 for an installment payday loan being made | 14 | | or entered into the data base. The certified consumer reporting | 15 | | service shall not charge any
additional fees or charges. | 16 | | (Source: P.A. 96-936, eff. 3-21-11 .)
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